Indian shares rose on Tuesday, in line with broader Asian peers, as sentiment turned upbeat after US President Donald Trump and North Korean leader Kim Jong Un pledged to work towards complete denuclearisation of the Korean peninsula. The benchmark BSE index closed up 0.59 percent at 35,692.52, while the broader NSE index ended 0.52 percent higher at 10,842.85 ahead of retail inflation data that will be released later in the day.
Both indexes posted their highest closing level since February 1. Lupin Ltd led gains on the NSE index, ending 6.4 percent higher. The Nifty Pharma index rose 2.58 percent to close at its highest in over one month. "The market is consolidating ahead of events and we are seeing sectoral rotation," said Deepak Jasani, head of retail research at HDFC Securities.
Sentiment was a bit cautious before the release of May retail inflation data. Retail inflation is expected to have risen to a four-month high last month due to a surge in oil prices, a Reuters poll of economists showed. Dr.Reddy's Laboratories Ltd and Lupin Ltd led gains on the NSE index. Dr.Reddy's rose as much as 4.7 percent to its highest since April 24, while Lupin climbed up to 3.5 percent to a more than 2-month high.
The Nifty pharma index jumped as much as 2.2 percent to its highest since May 8 and was on track for a fifth consecutive session of gain. The index has gained 7.5 percent so far this month after declining 9.3 percent in May.